Amlak Finance Pjsc · DFM:AMLAK
Amlak Finance Pjsc — Q3 2018 Earnings Presentation
39 slides from Amlak Finance Pjsc's earnings presentation, Jan 3, 2019
Slide 1: Amlak Finance PJSC Investor Presentation
Amlak Finance PJSC Investor Presentation September 2018
Slide 2: Disclaimer
Disclaimer This presentation has been produced by the management of Amlak Finance PJSC (“Amlak” or the “Company”), solely for use at various teleconference arranged for existing/prospective institutional investors and for their clients/potential clients and shall not be reproduced or redistributed,
Slide 3: Sections
Sections 1 Amlak at a Glance Company Profile 4 Through The Years 5 2 Strategic Focus Key Strategies 7 Strategic Enablers 8 Corporate Values 9 Business Overview 10 Segment Strategy – REF 11 Segment Strategy – REI 12 Segment Strategy – CFI 13 3 2018 Quarterly Financial Highlights Group Income Statemen
Slide 4: Amlak at a Glance: Company Profile
Amlak at a Glance Company Profile Background • Amlak Finance PJSC was incorporated in Dubai, United Arab Emirates, on 11 November 2000 as a Private Shareholding Company. • At the constituent shareholders meeting held on 9 March 2004, a resolution was passed to convert the Company to a Public Joint S
Slide 5: Through The Years
Amlak at a Glance Through The Years 43% drop in Liabilities and Reported profit of AED 139 Share Capital increase by 6 Growth, expansion and Commitments by AED 8 Bn Mn times to AED 750 Mn diversification Reported profit of AED 51 Mn Total assets reaching AED 21 Bn Share Capital increase Real estate
Slide 6: Strategic Focus
Strategic Focus
Slide 7: Key Strategies
Strategic Focus Key Strategies Strategic Priorities Strategic Intents Strategic Metrics Adherence to • Ensuring full compliance with and adherence to restructuring agreement signed with financiers Restructuring Compliance Agreement • Flawless implementation of restructuring milestones • Build up rea
Slide 8: Strategic Enablers
Strategic Focus Strategic Enablers Product Differentiation Our Vision (What we aim to become?) Regional & Customer Focus Political Stability “To be a specialized and customer centric real estate financing institution in the UAE” Cost Strategic New Customer Rationalization Enablers Segments Our Missi
Slide 9: Corporate Values
Strategic Focus Corporate Values Our Corporate Values (What we stand for?) Our Mission (What is our purpose?) Strategic “To provide niche financial solutions, Enablers customized to fit our customers' needs, while maximizing shareholder value and nurturing our employees” Our Corporate Values (What w
Slide 10: Business Overview
Strategic Focus Business Overview Amlak’s overall business is being managed by way of 3 segments Business Segments Real Estate Investment Corporate Finance Segment Asset Mix – FY 2017 Real Estate Finance (REF) (REI) and Investment (CFI) Developer & • Includes Amlak Ready Property • Includes investme
Slide 11: Segment Strategy - REF
Strategic Focus Segment Strategy - REF Real Estate Finance (REF) Ready Property Key Metrics Actual 2017 Targeted 2018 Continue to pursue investors through investor related products Cross-sell to existing customers Profit Rate 6% 6% Offer innovative products and address under-served segments Po
Slide 12: Segment Strategy - REI
Strategic Focus Segment Strategy - REI Real Estate Investment (REI) Focus on exit from REI after full redemption of Mudaraba Instrument (Contingent Convertible Instrument - CCI). This is expected to be Key Metrics Actual 2017 Targeted 2018 achieved through enhancement of land parcel values by deve
Slide 13: Segment Strategy - CFI
Strategic Focus Segment Strategy - CFI Corporate Finance and Investment (CFI) Focus on enhancing the value of core assets (especially Key Metrics Actual 2017 Targeted 2018 Amlak KSA) by holding these performing investments for a longer duration with the view to sale as and when AED AED appropriate
Slide 14: 2018 Quarterly Financial Highlights
2018 Quarterly Financial Highlights
Slide 15: Group Income Statement
2018 Quarterly Financial Highlights Group Income Statement AED in Mn Q3 2018 vs. Q3 2017 Sep 2018 vs. Sep 2017 Particulars Q3 2018 Q3 2017 Sep 2018 Sep 2017 Variance Change in % Variance Change in % Income from Financing and Investing assets 47 47 - 0% 132 143 (11) (8%) Rental income 16 15 1 7% 48 4
Slide 16: Group Balance Sheet
2018 Quarterly Financial Highlights Group Balance Sheet AED in Mn Sep 2018 vs. FY 2017 Particulars Sep 2018 FY 2017 Variance Change in % Cash and Balances with Banks 328 673 (345) (51%) Islamic Financing and Investing Assets 2,705 3,085 (380) (12%) Real Estate Investments 2,489 2,357 132 6% Corporat
Slide 17: 2017 Full Year Financial Highlights
2017 Full Year Financial Highlights
Slide 18: Group Income Statement
2017 Full Year Financial Highlights Group Income Statement AED in Mn Change in % Particulars FY 2017 FY 2016 FY 2015 2017 vs. 2016 2016 vs. 2015 Income from financing and Investing assets 191 207 297 (7%) (30%) Rental income 61 56 46 7% 22% Share of results of an associate 26 28 25 (7%) 12% Sale of
Slide 19: Group Income Statement (cont'd)
2017 Full Year Financial Highlights Group Income Statement (cont’d) AED in Mn Income from Financing Total Income Rental Income and Investing Assets 1000 335 70 60 800 285 50 600 40 235 400 778 297 30 57 61 20 46 532 185 200 432 207 191 10 0 135 0 2015 2016 2017 2015 2016 2017 2015 2016 2017 • 2015/1
Slide 20: Group Balance Sheet
2017 Full Year Financial Highlights Group Balance Sheet AED in Mn Change in % Particulars FY 2017 FY 2016 FY 2015 2017 vs. 2016 2016 vs. 2015 Cash and Balances with Banks 673 621 606 8% 2% Islamic Financing and Investing Assets 3,085 3,220 3,460 (4%) (7%) Real Estate Investments 2,357 2,167 2,411 9%
Slide 21: Group Balance Sheet (cont'd)
2017 Full Year Financial Highlights Group Balance Sheet (cont’d) AED in Mn Real Estate Investments Corporate Investments Assets Mix – 2017 673 3,000 350 149 10% 300 2% 2,500 250 315 2,000 5% 200 1,500 150 308 301 315 3,085 2,411 2,167 2,357 47% 1,000 100 2,357 500 50 36% - - 2015 2016 2017 2015 2016
Slide 22: Financial Ratios
2017 Full Year Financial Highlights Financial Ratios Highlights Net Financing to Deposit Ratio Key Ratios FY 2017 FY 2016 FY 2015 80% Net Financing to Deposit 70% Ratio 64% 68% 70% Non-Performing Financing 60% Asset to Total Asset Ratio 7% 9% 8% 50% Liquid Assets to Total Assets 16% 11% 7% 40% 70% 6
Slide 23: Financial Ratios (cont'd)
2017 Full Year Financial Highlights Financial Ratios (cont’d) Return on Equity (ROE) Return on Average Assets (ROA) 9% 2% 8% 7% 6% 5% 1% 2% 2% 4% 8% 7% 3% 2% 1% 3% 1% 0% 0% 2015 2016 2017 2015 2016 2017 Net Profit Margin Cost to Income Ratio 4% 50% 45% 40% 3% 35% 30% 2% 25% 20% 43% 3% 35% 15% 32% 1%
Slide 24: Awards
Awards
Slide 25: 2015 – 2017 Awards
2015 – 2017 Awards 2016 2017 2018 1. Dubai Chamber’s CSR Label 2016 1. Best Sharia Compliant Property Finance 2. Best Islamic Finance CSR Company UAE 2016 Company 3. Best Sharia Compliant Property Finance Company UAE 2016 2. Best Islamic Finance CSR Company UAE 2017 1. Global Islamic Business Award
Slide 26: Appendix
Appendix
Slide 27: 2018 Quarterly Consolidated Statement of Income
Appendix 2018 Quarterly Consolidated Statement of Income AED ‘000 Change in % Particulars Q3 2018 Q3 2017 Sep 2018 Sep 2017 Sep 2018 vs. Sep 2017 Income from Islamic financing and investing assets 44,090 45,623 126,385 137,978 (8%) Fee income 1,932 1,095 5,122 4,522 13% Income on deposits 1,736 1,61
Slide 28: 2018 Quarterly Consolidated Statement of Financial Position
Appendix 2018 Quarterly Consolidated Statement of Financial Position AED ‘000 Change in % Particulars Sep 2018 FY 2017 Sep 2018 vs. FY 2017 ASSETS Cash and balances with banks 328,051 673,015 (51%) Islamic financing and investing assets 2,704,701 3,084,983 (12%) Available-for-sale investments 11,981
Slide 29: 2017 Full Year Consolidated Statement of Income
Appendix 2017 Full Year Consolidated Statement of Income AED ‘000 Change in % Particulars FY 2017 FY 2016 FY 2017 vs. FY 2016 Income from Islamic financing and investing assets 184,456 200,493 (8%) Fee income 6,635 6,119 8% Income on deposits 6,487 7,135 (9%) Rental income 60,597 56,602 7% Fair valu
Slide 30: 2017 Full Year Consolidated Statement of Financial Position
Appendix 2017 Full Year Consolidated Statement of Financial Position AED ‘000 Change in % Particulars FY 2017 FY 2016 FY 2017 vs. FY 2016 ASSETS Cash and balances with banks 673,015 620,502 8% Islamic financing and investing assets 3,084,983 3,219,711 (4%) Available-for-sale investments 12,387 7,688
Slide 31: Board of Directors
Appendix Board of Directors Mr. Ali Ibrahim Mohammad Mr. Essamuddin Galadari Mr. Khalid Al-Halyan Chairman Vice-Chairman Board Member Mr. Farooq Mahmood Arjomand Mr. Hesham Abdulla Al Qassim Major General Ahmad Hamdan Bin Dalmook Mr. Arif Abdulla Alharmi Board Member Board Member Board Member Managi
Slide 32: Stakeholders Priorities
Appendix Stakeholders Priorities Dividend Share Price Return on Equity Restructuring Quality service Shareholders agreement Innovative Liability products management Differentiation Customers Financiers Covenants Public relations Compliance - Transparency Regulators Sharia/Reg
Slide 33: Products and Services
Appendix Products and Services Istithmari is the first-of-its-kind Buy-To-Let property finance (Ijara) product in the region, designed for investors looking Istithmari to invest in completed residential and commercial properties. Customers are also provided with a complimentary full suite of Propert
Slide 34: General Economic Indicators - UAE and Dubai Economy
Appendix General Economic Indicators - UAE and Dubai Economy The United Arab Emirates central bank has cut its forecast for economic growth this year after non-oil growth slowed slightly in the second quarter. The central bank now expects the UAE’s inflation-adjusted gross domestic product to expa
Slide 35: General Economic Indicators - Key Economic Indicators
Appendix General Economic Indicators - Key Economic Indicators 1 Brent OPEC Oil Basket Price in UAE (AED) Distribution of GDP Sectors (in %) – UAE & Dubai 2017 350 UAE Dubai 26.6 299 300 278 30 23.1 22.6 22.3 237 243 25 250 221 As of % 15.9 204 207 204 15.1 193 20 13.4 184 183 12.3 200 165 168 10.4
Slide 36: General Economic Indicators - Dubai Real Estate Market
Appendix General Economic Indicators - Dubai Real Estate Market The value of property transactions conducted in Dubai in the first nine months of the year was down more than 20 per cent on the same period in 2017, according to figures from Dubai Land Department (DLD). According to DLD, Dhs162bn ($
Slide 37: General Economic Indicators - Key Real Estate Indicators
Appendix General Economic Indicators - Key Real Estate Indicators Number and Value of Real Estate Transactions Dubai Residential Sales and Rental Price Changes Number of Sales Transactions Value of Sales Transactions Sales Price (AED/Sqf) Rent Price (AED/Sqf/Annum) Rent Price (AED/Sqf/Annum) 4,500 8
Slide 38: General Economic Indicators - Dubai Mortgage Market
Appendix General Economic Indicators - Dubai Mortgage Market Value of Residential and Commercial mortgage Mortgage Transactions Over the Years transactions in Dubai valued at AED 16.8 Billion Number of Mortgage Transactions Value of Mortgage Transactions during the first 9 months of 2018, when com
Slide 39: Investor Relations
Contact Investor Relations Phone: +971 4 4274500 Web: http://www.amlakfinance.com/en/investor-relations.html Email: InvestorRelations@amlakfinance.com P O Box: 2441, Dubai, United Arab Emirates